The Impact of Stock Splits on Stock Prices

Xinyu Ge; Lin Li; Han Leng

doi:10.54254/2754-1169/18/20230054

Research Article

Open access

Published on 13 September 2023

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Ge,X.;Li,L.;Leng,H. (2023). The Impact of Stock Splits on Stock Prices. Advances in Economics, Management and Political Sciences,18,46-54.

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The Impact of Stock Splits on Stock Prices

Xinyu Ge *^,1, Lin Li ², Han Leng ³

¹ University College London
² Guangzhou Business School
³ University of Southampton

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2754-1169/18/20230054

Abstract

Stock splits can increase liquidity and also attract smaller investors, although no single study has shown that stock splits have an effect on stock prices. The primary aim of this project was to find the impact of stock splits on stock prices. This paper uses Amazon and Google stock price data for research. The event study and market model were used to analyze the relevant data and to explore the effect. It includes a total of four events on the announcement day and implementation day of the two companies. The study results show that stock splits do have an impact on share prices.

Keywords

effect of stock splits, market modle, event study

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References

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Cite this article

Ge,X.;Li,L.;Leng,H. (2023). The Impact of Stock Splits on Stock Prices. Advances in Economics, Management and Political Sciences,18,46-54.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 2023 International Conference on Management Research and Economic Development

Conference website: https://2023.icmred.org/

ISBN：978-1-915371-79-9(Print) / 978-1-915371-80-5(Online)

Conference date: 28 April 2023

Editor：Canh Thien Dang, Javier Cifuentes-Faura

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.18

ISSN：2754-1169(Print) / 2754-1177(Online)

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